Thursday, August 26, 2010

CIMB Research ups CI Holdings target price to RM4.20

KUALA LUMPUR: CIMB Equities Research said CI Holdings' (CIH) record FY6/10 net profit of RM38 million exceeded its forecasts and consensus estimates by 6%.

The research house said on Thursday, Aug 26 that it had underestimated CIH's sales volume growth which kept going, even after the Chinese New Year selling campaign.'' Another pleasant surprise was the full-year DPS of 11 sen, higher than its forecast of 10 sen.

'We raise our EPS forecasts by 5.5% for FY11 and 9.5% for FY12 for higher sales assumptions. We also up our DPS forecast from 11 sen to 12 sen for FY11.

'Our target price goes up from RM3.90 to RM4.20, pegged to an unchanged 20% discount to our 15x target market P/E in view of the stock's relatively low liquidity. CIH remains firmly a BUY,' it said.

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